Wage Assignments on an illegal loan??

Wage assignments are a real thing. It's not just pdl's that use them. They are legally valid documents in most states. Some state's have outlawed them. But it isn't just a piece of paper. They are valid and binding, unless you have revoked it before it was sent to your employer. You can't revoke it after the employer recieves it, it is too late at that point to revoke. That's why you have to revoke asap!

The reason most employers will put it through is because you did sign saying that you agreed to let the company do this. Most employers will think it is something you have requested. Or they will think that they have to do it. Some employers will think it is a garnishment, but most should know better because they have seen a real garnishment.

The problem is that most employers don't understand about pdl's. To them, you signed a contract. They don't care so much that the business is illegal. They don't understand about these places. To them, you owe this debt, signed a piece of paper allowing the company to assign your wages, and the employer thinks it's the right thing to do allowing it to go through.

JEN -

the best way to handle any possibility of a wage assignment is to simply revoke ANY wage assignment with ANY payday lender. They may not have one in their "contract", but in order to do a little CYA (cover your...backside), it's a good idea to include a wage assignment revocation in your letter that revokes their ACH authorization on your bank account as well. Cover all the bases at once.

Yep! If you have proof that you revoked the assignment well before the company tried to use it, then there is little your employer can do! If they still put it through anyways then they are breaking the law and will end up having to pay you back.

Goudah, I love your hearts.I agree, I believe in revoking any and everything. I do cover all my bases. So far , I have not been blessed with any wage garnishments. I think its because I switched jobs, and only 2 know my new work # and of those 1 got a pif on.Yje other one is the famous PDL in the Grenadines, so i dont put anything past them. I will just wait and see

I understand this is a "binding agreement", as you stated. However, it is still just a "voluntary" agreement. Correct? The employer does not have to abide by it. They can just say "We do not honor wage assignments." Am I correct here?

Yes, you are correct. It's is up to the employer wether they want to honor it or not. Some employers don't allow voluntary deductions for anything but insurance . . . .

I send out the c & d letters next Thursday..should I incoporate revoking the ability for wage assignment in the initial letter??

...and if it gets to the point where you need to leverage the law, refer to that too. Example-goudah pm'ed me the laws for CA and there are a BUNCH of requirements that need to be met for the wage assignment to be valid EVEN IF my employer wanted to honor it. One of the requirements for california was that if someone was married, the spouse has to have signed it too. YEA RIGHT! :roll:

Thank you (AGAIN!) goudah. You know I need things s-p-e-l-l-e-d out for me! I just wanted to make sure what I did was enough. It is. And, volley, goudah posted some good stuff that was included in the fax to Cash Transfer Centers. Nice "legal" stuff! :D

LMK - Yes, just state in the letter:

Quote:

LMK, Either that or do a specific letter and include it. If it is not too much trouble I would add that to the initial letter. Fewer pages for them to loose. I simply spoke to my HRM and explained the situation - emailed her one with allthe pdl names listed on it she sid she would ocntact me if anything came in. I also emailed all the letters to my bank when I closed my account. She has them all filed as well. I only sent one letter with everything I wanted to say including the revocation clause. Roxy

I'm lucky - In Oregon wage assignment are illegal! They are also illegal in Florida, and I'm sure a bunch of other states. You just have to figure out where to look in the laws to find it.

Got it! May as well revoke everything all at once! You all are wonderful...love ya guys!!! :wink:

And that is easier said than done for some of us...I for the life of me can not wrap my brain around some of the legal verbage...thus, a big thanks for the new thread on state laws you have started.

Yeah, they can be very hard to understand. Plus, a lot of the time you don't know if you are interpreting them correctly! That's why I wanted to include emails from the DFI's of each state so we know we are interpreting them right.

goudah I just saw the sticky you posted 2 days ago on state laws made easy...awesome just awesome! the information you've gathered so far has been incredible and the most helpful!! Any idea if wage assignments are legal in NE?

Let me check . . . Give me a few minutes and i will PM you what I can find . . .

Let me ask a question. I mean, I think everyone would like to know if wage assignments are even legal in their state; however, does it matter since they are totally voluntary? I do understand it would be much nicer knowing that they are illegal in your state so they can just be thrown in the garbage and not set someone off into a panic attack (me!). But, even so, if they're voluntary, would it really matter? Or just knowing for peace of mind? I mean, I don't know if they're legal in my state or not. They might not even be. I don't know. But (with the knowledge gained from this site) I knew that it was a voluntary thing, so it wasn't like the law was coming after me or anything. So, I still had a panic attack. That's my nature! However, I understand wanting to know. I'm just asking does it matter? Because in the end, regardless of being legal or illegal, it's still going to wind up being the decision of the employer, isn't it? Even if they are illegal in a persons state, what if the employer is not educated (as we've read on previous posts) and honors it anyway? Does this make any sense to anyone? Or am I just confusing the matter?

[samebox="Vikas"]Content removed since I received a Fax from Steve at Northway Financial certifying under penalty of perjury that the content posted is false. This was done as per policy posted at http://www.ourcommunitypower.com/vikas/how-to-respond-to-information-posted-about-you-or-your-company-on-ourcommunitypowercom-forums/

The fax has been kept on file.

Vikas[/samebox]

PDL, thank you for your post! I read it twice. Takes a bit to sink in. Your information is great. And I appreciate the response. I just get so amazed at these illegal companies. Why? I shouldn't be amazed any longer, but I still am. Thank you so much for responding! :D

Cannr, I understand what you are saying. And yes, a lot of the time it will depend on the employer. I know someone that just recently had to really really fight with her employer to not do the wage assignment, even though they were illegal in her state. So the employer does have a lot to do with it.

But I would say this - As long as you revoke it, and keep proof that you have revoked it, you will be okay. If you can show that you revoked the wage assignment in a timely manner, and your employer still puts it through, then the employer is at fault. You can contact your state labor board, or a lawyer, and they can get your money back. It's a pain, yes. But as long as you revoke the wage assignment you should be okay. The law would then be on your side.

Wow,
In California, a spouse needs to sign a wage assignment letter? I never knew that and thank you, Goudah!! That just means that a hefty percentage of the letters that are signed in CA are illegal!!!!! And thanks PDL investigator for your information. This just shows how shady these offshore companies especially are--specifically the one you are talking about with offices in BC and Malta.

Kscornell - I just PM'd you the law I'd found about CA wage assignments . . . .

Thanks, Goudah! :D

Thanks, guys! I was hoping someone would understand what I was asking, and you did! It's basically the employer being uneducated and honoring these crazy things regardless of them being legal/illegal or even voluntary. Okay. That was my thought. Thank you once again! :D